Bloomberg Analyst Says Bitcoin’s Relationship to Commodities Could Hint at a Price Recovery – Here’s Why
Bloomberg Intelligence senior commodity strategist Mike McGlone thinks Bitcoin’s (BTC) relationship to commodities might be indicating the highest crypto asset is on its method to a worth restoration.
McGlone tells his 52,900 Twitter followers that Bitcoin is without doubt one of the most discounted main asset courses.
“The bottom-ever crypto volatility vs. the Bloomberg Commodity Index (BCOM) could portend a resumption of Bitcoin’s propensity to outperform. Our graphic exhibiting the elongated upward trajectory of the crypto’s worth vs. the BCOM is typical in contrast with most property.
However what’s distinctive relative to commodities is the 260-day volatility of the crypto dropping to new lows. If historical past is a information, Bitcoin volatility is extra prone to recuperate vs. commodities when the crypto heads in the direction of new highs.”
BTC is buying and selling at $19,161 at time of writing. The highest-ranked crypto asset by market cap is down a bit of over 1% prior to now 24 hours.
McGlone famous earlier this week that Bitcoin just lately traded on the steepest low cost for the reason that computation of the flagship crypto asset’s 200-week transferring common started.
“The steepest Bitcoin low cost on September twentieth since its 200-week transferring common might be calculated reveals the extremity of the crypto crash and threat vs. reward for shorts vs. potential resumption of the elongated upward trajectory.”
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